Titling the TikTok Dilemma: Potential Lost Opportunities for Brands and Content Creators
In response to your inquiry about the impact of a potential TikTok ban on luxury and resale brands, Claire Adler, director of London-based luxury PR firm Claire Adler Luxury PR, shared some insightful perspectives. "Currently, there are two contrasting ways that luxury and resale brands are leveraging TikTok," Adler said. "High-end houses like Chanel, Louis Vuitton, Gucci, 77 Diamonds, and Breitling are tapping into TikTok to connect with younger consumers and invite them into their worlds, positioning them as future buyers." On the other hand, resale brands like Luxe Collective and Sellier Knightsbridge are using TikTok's shoppable video feature to sell pre-loved luxury items through TikTok Shop.
The looming TikTok ban raises serious concerns for these brands because TikTok is uniquely equipped to serve two very different objectives: long-term relationship building and immediate sales. With few platforms offering such capabilities, a potential TikTok ban could result in significant disruption for brands, influencers, and content creators whose marketing strategies are tailored to TikTok and its users.
To examine how luxury and resale brands have utilized the platform and evaluate what they stand to lose without ByteDance securing an American buyer, we turned to our business network for insights into the future of marketing beyond TikTok.
TikTok as a Revenue Powerhouse
For some brands, TikTok has become an essential revenue source, delivering direct sales growth, national visibility, and innovative opportunities. Companies like apparel brand PacSun and beauty brands KimChiChic Beauty and Fazit Beauty have utilized TikTok for everything from viral campaigns and shoppable livestreams to retail partnerships and influencer collaborations.
Brieane Olson, CEO of PacSun, said, "TikTok has been an integral part of PacSun's strategy, especially as we look to connect with Gen Z in a way that's genuine and immersive. From hashtag challenges to creator collaborations and shoppable livestreams, we've built an engaged community of over 2 million followers. Being among the first brands to partner with TikTok Shop has allowed us to innovate in how we connect with our customers and drive results—like selling nearly half a million pairs of jeans through livestreams in just 18 months."
TikTok Creates Deeply Engaged Communities
Beyond driving sales, TikTok's interactive platform allows companies like Life360 and hair care brand tgin® to form authentic audience connections through relatable content and amplifying underrepresented voices.
Mike Zeman, CMO of Life360, shared, "TikTok has become an incredibly important part of Life360's business and marketing strategy. It's allowed us to reach Millennial parents as well as Gen Z—digitally native and highly influential audiences—on their terms. As a brand focused on making everyday family life easier, it's essential that we connect not just with parents but also with teens, who are often the tech trendsetters. TikTok has given us a platform to bring our brand to life in relatable, creative ways."
Ryan Thomas, assistant marketing manager for tgin®, added, "TikTok has shown up in our business strategy when it comes to doing consumer research and general marketing efforts. Using the app, you can effortlessly search trends in the natural haircare community, find creators passionate about tgin^{®} and healthy hair, and see direct feedback on what our consumer wants from us or generally likes. It's real, and it's raw."
TikTok's Nimbleness and Agility
TikTok's emphasis on spontaneity and real-time content allows brands to embrace a flexible approach, moving away from traditional, highly polished production methods for untapped opportunities.
Thirty Years, an apparel brand, and marcomm firm Bastion Agency have leveraged TikTok's platform for quick content creation and engagement with their niche audiences.
If TikTok were to be banned, what's at stake for companies that have leaned into it as a marketing powerhouse? Brands and creators might have to reconsider their strategies, considering the potential consequences of putting all their marketing eggs into one digital basket. In the next part of this series, we'll explore alternative platforms and strategies for navigating a new era of social media marketing.
Enrichment Data:
In a ban scenario, brands and creators have myriad alternatives to consider, which each offer unique features and engagement potential. The following are some top alternatives and strategies for navigating this new era of social media marketing:
- Instagram Reels
- Features: User-friendly editing tools, a complex algorithm that prioritizes posts, and a vast user base
- Strategy: With similar features to TikTok and a broad audience, Instagram Reels is an ideal alternative.
- Lemon8
- Features: Aesthetic visuals, authentic inspirational uploads, and integration with TikTok credentials
- Strategy: Lemon8 is a new platform that focuses on community building and aesthetic visuals, making it an excellent choice for creators looking to share content across both sites.
- Firework
- Features: Live shopping streams, digital showrooms, AI assistant for responding to video comments, and direct messaging with viewers
- Strategy: Firework is ideal for e-commerce and influencer marketing, although its small user base may limit its appeal.
- Chingari
- Features: Live chat rooms, virtual gifting, expert consultations, and a built-in gaming system
- Strategy: Popular in India, Chingari faces challenges in expanding its user base globally but is an excellent choice for creators looking to build community connections and engage in live interactions.
- Vero
- Features: High-quality photos and videos, a customizable feed, and a small user base
- Strategy: Vero may not offer a broad audience, but creators looking for control over their feed and niche audiences may find it attractive.
- ShareChat
- Features: Regional language content and live streaming
- Strategy: Popular in India, ShareChat has limited international reach but caters to local audiences popularizing regional content.
- YouTube
- Features: Tailored recommendations, short-form videos, and a huge user base
- Strategy: YouTube is a top alternative for regular TikTok users, with 46% of respondents indicating they would turn to it if TikTok were banned.
- LinkedIn and Instagram
- Features: Short-form video content and strong monetization potential
- Strategy: LinkedIn and Instagram are essential for B2B marketing and offer strong monetization potential. Brands can leverage these platforms for short-form video content and live streams to maintain engagement and revenue opportunities.
- Multi-platform strategy
- Strategy: Adopting a multi-platform strategy is crucial for creators and brands, allowing them to diversify content across multiple platforms and mitigate risks associated with app-specific bans.
- Content repurposing and crossposting
- Strategy: Repurposing and crossposting content across different platforms like Instagram Reels and YouTube Shorts can help maintain consistency and reach a broader audience.
- Private community spaces
- Strategy: Focusing on private community spaces within social platforms, such as direct messaging (DMs) and closed groups, can help foster closer connections with audiences.
- Hashtag decline
- Strategy: As hashtag usage declines, brands should focus on creating high-quality content that doesn't rely heavily on hashtags, relying on contextual cues and AI-driven content discovery instead.
In the event of a TikTok ban, executive leaders like CMOs might need to reevaluate their marketing strategies to avoid relying too heavily on one digital platform. For instance, Brieane Olson, CEO of PacSun, could explore alternative platforms that offer similar features to TikTok, such as Instagram Reels, to maintain their connection with Gen Z audiences.
With the potential loss of TikTok, brands might leverage LinkedIn and Instagram for their B2B marketing needs, utilizing their short-form video content and live streaming features to stay engaged with their audiences and drive revenue opportunities. Companies like 77 Diamonds and Breitling, currently leveraging TikTok's shoppable video feature, could explore similar features on these platforms to maintain their pre-loved luxury item sales.
